Profit, Cashflow & Clarity: Why Understanding Your Numbers Matters More Than Ever

Making a profit is the goal. But managing your cash is what keeps you in the game.

At DVA, we work with business owners across the North Shore and wider Auckland who want more than just end-of-year compliance. Some are long-time clients, others come to us after feeling left in the dark about their financials, unsure of what their numbers mean, or how to use them to make decisions.

Profit vs Cashflow — What’s the Difference?

Many business owners use “profit” and “cash” interchangeably — but they’re not the same.

• Profit is what’s left after you’ve paid your expenses, wages, suppliers and tax. It’s a measure of long-term business health.

• Cashflow is the money flowing in and out of your business day-to-day — what you use to trade, pay bills, staff and suppliers.

You can be profitable on paper and still run into cashflow issues. That’s why it’s not enough to just make a profit. You need to manage your cash well too.

You don’t pay suppliers with profit, you pay them with cash.

Why Cashflow Management Matters

The old saying “cash is king” still holds true. Without enough cash on hand, even a thriving business can hit the wall. Late-paying customers, rising costs, or holding too much stock can all drain your cash if you’re not watching closely.

If you want to stay ahead, talk to an experienced accountant who understands the realities facing Kiwi businesses right now.

So, How Do You Stay on Top of Profit and Cashflow?

Understanding the difference is a great start — but the real power comes from regularly reviewing your numbers and knowing how to act on them.

One key step is making sure to attend your Accounts Review Meeting.

This isn’t just a compliance chat. It’s a valuable opportunity to step back, assess your business performance and find opportunities to improve profit, protect cashflow and plan ahead with confidence.

Ready to Take Control of Your Numbers?

To our clients, we’ll be in touch when your Annual Accounts are ready along with a meeting link and a prework to help us maximise the value from the session. But if you want to get ahead of the curve, we can also talk now about setting up cashflow reporting and forecasting tailored to your business.

Let’s make sure your numbers are telling the right story and helping you shape a better one.

Looking for an accountant in North Shore or wider Auckland who can help you do more than just meet your tax deadlines? Let’s chat.